Answer: w
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A: long-run growth rate t[a
n,3
3*(1+10%) =3.3 million "2=v?,'t
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B: target payout ratio Q>Q$BCD5
Target payout ratio=3/15=20% .[O*bk
Dividend of 2008=18*2%=3.6 million =AR'Pad
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C: residual dividend approach 4H1s"mP<
Retained earnings=total new investment*(1-debt ratio) XM8C{I1
=12*(1-40%) im1]:kr7
=7.2 million pV>/"K
Residual dividend=18-7.2=10.8 million pu `|HaQaE
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) 6o,,w^
Regular dividend=3*(1+10%) =3.3 million U'lrdc"Q
Extra dividend=residual dividend –regular dividend U15Hq*8Z
=10.8-3.3 C(?lp
=7.5 million b5H[~8mf
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2. N Company manufactures a kind of product used throughout the machinery industry. The standard price of the materials for the products is $6 per kilogram; the standard quantity of materials allowed per unit is 1.5 kilograms. During July, 2,000 units of the products were finished, for which 3,200 kilograms of materials were used at a total direct material cost of $18.560. R8HA X
A. Calculate the direct material price variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. p]pFZ";70
B. Calculate the direct material quantity variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. 1>|p1YZ"
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). Wxp^*._q3I
<cWo]T`X!
Answer: dd$\Q
Notes: O
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Actual price=18560/3200=$5.8/unit #Q|$&b
Actual quantity materials per unit=3200/2000=1.6 kg/unit (>)Y0ki}
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1).Standard quantity * standard price=standard total cost kv5D
=0r
(1.5*2000) * 6 =$18000 N8mK^{
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials AY *
(3200-3000) * 6 =$1200 :Eob"WH
3)Actual quantity * (actual price- standard price)= Price variance of direct materials VDQ&BmJE
3200 * (5.8 – 6) =$640 kuUH2:L
4)actual quantity *actual price =actual total cost [x)BQX'
3200 * 5.8 =$18560 I#9K/[
8K1+ttjm
s'5
jvlG
A:Price variance of direct materials=(actual price-standard price)*actual quantity $]%k
<|X
= (5.8-6)*3200 w|$;$a7)
= $640 【F】 eL-92]]e
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. *!nS4[d
3HfT9
B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price Q>z0?%B
= (3200-3000)*6 sQt@B#;
=$1200 【U】 dn5T7a~
d5u
,x.R
Efficiency variance of $1200 【U】 due to the higher quantity of materials per unit of 1.6 kg/unit than the standard level of 1.5 kg/unit. ^(6.P)$
T`vj6F
P3N
f<
C:Total variance of direct materials=actual costs- standard cost tU?lfU[7
=18560-18000 }RM?gE
=560 【U】